Eliza Wong
Executive Summary
- Tai Er Sauerkraut鱼 (太二酸菜鱼) is under scrutiny for its ‘fresh fish’ claims, with meals served in 10 minutes raising consumer doubts.
- The brand’s shift to ‘fresh stores’ highlights the tension between operational efficiency and authenticity in China’s competitive dining market.
- Parent company Jiulongjiu (九毛九) reported a 10.14% revenue drop in H1 2025, with Tai Er’s sales declining 13.3%.
- Industry experts emphasize the need for clearer standards and transparency around pre-made dishes (预制菜) to rebuild consumer trust.
- The controversy reflects broader challenges in balancing scale, marketing, and customer expectations in China’s F&B sector.
Storm Eye: The Truth Behind Tai Er’s ‘Freshly Killed Fish’ Claims
China’s dining sector faces renewed scrutiny as Tai Er Sauerkraut鱼 (太二酸菜鱼) becomes the latest chain embroiled in the pre-made dishes controversy. Following recent attention on Xi Bei Noodle Village (西贝莜面村), Tai Er is now under the spotlight for its ‘fresh fish’ promises. With meals served in just 10 minutes, consumers question whether the brand’s ‘live fish, freshly killed’ claim holds water. This pre-made dishes controversy highlights the delicate balance between operational efficiency and consumer trust in China’s rapidly evolving food and beverage landscape.
Inside Tai Er’s ‘Fresh Store’: Operational Realities vs. Consumer Expectations
A recent visit to Tai Er’s Beijing ‘fresh store’ revealed the complex reality behind their marketing claims. The store prominently displays banners emphasizing ‘live fish, fresh beef, fresh chicken’—all part of the brand’s 2025 ‘fresh upgrade’ initiative. However, the operational reality differs from customer expectations.
Behind the Kitchen Doors
When ordering the classic black fish sauerkraut dish (价值128元的“经典黑鱼酸菜鱼”), kitchen staff were observed using pre-prepared fish fillets rather than processing live fish upon order. Staff explained that fish are killed and processed earlier in the day rather than at point of order. ‘If customers are willing to wait 45 minutes, we can arrange true live preparation,’ one employee noted, highlighting the operational impracticality of true point-of-order preparation for a high-volume restaurant.
The Efficiency Equation
Tai Er’s operational model prioritizes efficiency—a necessity in China’s competitive dining market. The 10-minute service time demonstrates meticulous preparation: pre-made broth from central kitchens, pre-measured ingredients, and synchronized cooking processes. Former store managers confirm that central kitchen preparation is essential for maintaining quality and speed across hundreds of locations.
Brand Evolution and Market Pressures
Tai Er’s current challenges reflect broader market dynamics. Founded in 2015, the brand initially gained popularity through its focused menu and youthful positioning. However, changing consumer preferences and increased competition have forced strategic adjustments.
From Specialty to Generalization
Originally known for its single-focused menu, Tai Er has expanded offerings to include fresh beef, children’s meals, and non-spicy options—effectively transforming toward a ‘Sichuan small restaurant’ model. While necessary for broader appeal, this dilution has weakened brand distinctiveness. The pre-made dishes controversy further complicates their positioning as consumers increasingly prioritize authenticity and transparency.
Financial Performance and Market Position
Parent company Jiulongjiu International Holdings Ltd (九毛九国际控股有限公司) shows concerning financial trends:
- H1 2025 revenue: RMB 2.753 billion, down 10.14% year-on-year
- Net profit attributable to owners: RMB 60.69 million, down 16.05%
- Tai Er revenue: RMB 1.949 billion, down 13.3%
- Restaurant count decreased by 48 locations to 566 stores
- Same-store sales declined 19%, with turnover rate dropping from 3.8 to 3.1
These figures indicate significant headwinds, exacerbated by the recent removal from Hong Kong Stock Connect eligibility.
The Great Pre-Made Dishes Debate: Industry vs. Consumer Perspectives
The heart of the controversy lies in differing definitions of pre-made dishes. Industry professionals distinguish between pre-processed ingredients and fully pre-made meals, while consumers often view any non-kitchen-prepared element as ‘pre-made.’
Regulatory Definitions and Realities
In March 2024, China’s State Administration for Market Regulation (国家市场监督管理总局) and five other departments issued a joint notification defining pre-made dishes as ‘industrial pre-processed dishes requiring heating before consumption.’ However, implementation and consumer education remain challenging. Chen Junshi (陈君石), academician of the Chinese Academy of Engineering and researcher at China National Center for Food Safety Risk Assessment (国家食品安全风险评估中心), notes: ‘Pre-made dishes have been demonized as completely negative—this is incorrect. There’s conceptual confusion, such as mistaking long-ingredient shelf lives for pre-made dishes.’
Transparency and Trust Building
Wang Silu (王思露), member of the Chinese Nutrition Society and national senior nutrition health lecturer, emphasizes: ‘The issue isn’t preparation method but safety and transparency. If merchants openly indicate which items are pre-made and which are freshly prepared with reasonable pricing, most consumers would rationally accept it.’ This pre-made dishes controversy ultimately highlights the critical need for clear communication and honest marketing.
Broader Implications for China’s Dining Industry
Tai Er’s situation reflects industry-wide challenges in balancing scale, efficiency, and authenticity. As chains expand nationally, standardized processes become essential—yet consumer demand for ‘fresh’ and ‘authentic’ experiences continues growing.
The Standardization Dilemma
Central kitchen operations enable consistency and cost control but create perception challenges. The pre-made dishes controversy represents a clash between operational necessity and marketing messaging. Successful chains must navigate this carefully, ensuring promises align with practical realities.
Future Pathways
Industry evolution will likely include:
- Clearer labeling standards for preparation methods
- Investment in consumer education about modern food preparation
- Development of hybrid models combining efficiency with transparency
- Enhanced regulatory frameworks for pre-made dish classification and labeling
Navigating the New Dining Landscape
The Tai Er situation offers important lessons for China’s dining sector. Consumer expectations are evolving rapidly, with transparency becoming as important as taste and convenience. The pre-made dishes controversy underscores that operational efficiency cannot come at the expense of honest communication.
For investors and industry participants, successful brands will be those that balance scale with authenticity, using technology and processes to deliver quality while maintaining clear communication. As China’s dining market continues maturing, brands that prioritize trust and transparency will likely outperform those relying on marketing claims divorced from operational reality.
Monitor regulatory developments regarding pre-made dish standards and consumer protection measures. For market participants, consider how changing consumer preferences might affect dining brands’ valuations and operational models. The companies that successfully navigate this transition will likely emerge stronger, while those failing to adapt may face continued challenges.
